Home >Markets >Commodities >Gold prices today shoot up, up nearly 400 in a day

Gold prices in India jumped today, tracking a surge in global rates after latest comments from US President cast doubt about potential US-China trade deal. On MCX, February gold futures prices rose nearly 1% or about 400 to 38,318 per 10 gram. Domestic silver prices also moved higher. Silver futures on MCX rose 1.3% to 45,308 per kg.

US President Donald Trump today said he has "no deadline" for a deal with China and didn't mind waiting until after the 2020 election to make one. Investors had been hoping for a deal this year, or at least enough progress to stave off new U.S. tariffs on Chinese goods, including smartphones and laptops, scheduled to start December 15.

Gold is seen as a safe haven in times of economic uncertainty. Gold prices have risen about 14% so far this year in global markets mainly due to the 17-month-old trade dispute between the US and China.

Trump proposed tariffs on $2.4 billion in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat Monday to raise tariffs on steel and aluminum from Argentina and Brazil. The Wall Street fell sharply today following a decline in most European markets.

The US central bank has cut interest rates three times this year and is due to meet later this month. But the US Federal Reserve has signalled that there will be may be no further rate cuts in near future unless there is a U-turn in the economy.

Back in India, the government had earlier announced mandatory hallmarking of gold jewellery from January 2021, to ensure the purity of the precious metal. Currently, gold hallmarking, a purity certification of the precious metal, is voluntary in nature.

"India is to make hallmarking of gold jewellery mandatory from mid-January to ensure consumers about the quality of gold, and increase the interest of the domestic consumers," says Abhishek Bansal, chairman of ABans Group of Companies. (With Agency Inputs)

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